Research On The Budgeting Of Activity-Based Budget

With the acceleration of power system reform,power supply companies have faced fierce market competition.Total Budget Management can help enterprises to implement strategic execution and resource management more effective.As the start of total budget management,budgeting influences the implementation of total budget management.However,there are still many companies in China that have room for improvement in the budgeting process.The case company,the C grid corporation is a small & medium-sized power supply company which is one of the grass-roots unit under the State Grid Group's budgeting system.It has long been facing a single lagging approach to budgeting and being lack of detailed topics in budgeting and etc.it is risky for the C grid corporation to meet the challenges of marketization when Its previous budgeting system failed to provide continuous and effective management.Through the research interviews,theoretical analysis and the case analysis,the thesis systematically reviewed the practice of budgeting improvement using the Activity-Based Budget(ABB)by the C grid corporation,including the decomposition of the start of budgeting,the Budgeting of Revenue budget,the forecast of the workload and the resources.Then elaborated the key nodes and influence factors to provide a methodological path to the Activity-Based Budget(ABB)for other companies,and also provided ideas for the integration of industry finance and total budget management.The innovation of the thesis is that study is based on the characteristics of the power industry,and combing the innovation of the C grid corporation in the budgeting process,including investigate the impact of consumption ratio from the perspective of the budget,such as the impact of associated operations on the predicted consumption ratio.This further enriches the process of the Activity-Based Budget(ABB)and reflects the research significance of this thesis.The deficiencies of the papers are that some of the data are limited by the confidentiality requirements of the C company.The explanation of the budgeting logic is carried out in the form of calculation examples,and the corresponding budget management method is also based on individual companies so that stop further study on the generality.In addition,due to limited space,the paper takes the budgeting as the main research object and seldom analyzes how the Activity-Based Budget to improve the total budget management with other links.